Morning Market Briefing
Morning Market Briefing – Breakdown
September 20, 2021
Good Morning!
If you’ve ever been out on a newly frozen lake and felt your stomach down when you feel the ice crack or shift beneath your feet, you know how the longs feel this morning. FOMC week anxiety combined with the collapse of a Chinese real estate giant have markets poised to open more than an ATR on the downside. The good news for swing traders with a long bias is a move like today’s can create some really nice buying opportunities in some blue chip names. But we have to be careful not to hero trade. The markets are a falling knife in this mindset. Don’t reach out to catch it or you could cause yourself some serious pain. Much better to wait for signs of a base in market action than be right on the penny for the reversal.
SPY needs today’s price action to close before we find S/R levels.
QQQs $370 important support. We’ll open below it but how quickly can we reclaim?
YouCanTrade Coach Shaun’s Play Of The Day
So another interesting day in the markets for sure . interesting but the IWM actually had the best day as of writing this article. Will there be a nice return to small caps again only time will tell. Todays trade is on KODK Stochastics and MACD look interesting and we have broken the trendline on the hourly chart . If the stock is below $7.50 I will be buying the stock and STO 7.5 put and BTO 5 put and STO 7.5 call expiring October 15 for approximately $1.10 credit. Risk on the stock is the amount I paid and the spread is $250 less premium received.
YouCanTrade Coach Shan’s Play Of The Day
Anthem Inc. ($ANTM LTP $379.52) crossed over the 50EMA on Friday with strong bullish momentum. Even though the stock gained more than 44% in the last one year, for the last 3 months it has more or less moved sideways. It has potential to rise up to the previous high of $406 which is more than 5% up side from the current price.
On the other hand, the investors might see the stock remain sideways for much longer in the short run if it fails to beat the immediate resistance level at $385.25. In the downside though it has strong support level at $367.71
YouCanTrade Scanner Ideas
| Symbol | Idea Direction |
|---|---|
| CAT | Short |
| CLX | Short |
| DAL | Short |
| SHAK | Short |
| STX | Short |
For more information on the YouCanTrade scanner, click here.
Upcoming Event
Trade Sizing and How it Affects Profitability and Losses
September 21, 2021
Presented by Gouthum Karadi, YouCanTrade Crypto Coach
Each trader has a different amount of risk and reward that they can tolerate. In this webinar, YouCanTrade Crypto Coach Gouthum Karadi will walk you through methods that may potentially reduce risk and matching trade size to a goal using different cryptocurrencies.
You will learn:
• How to measure a form of risk and reward ratio using technical analysis of cryptocurrencies
• How some traders choose their different risk tolerances
• How to size a trade based upon specific risk tolerances
